The boomers are blowing up the new home market in Southwest Florida.
Housing starts surged to the fastest rate in a decade during the third quarter, and the demand from new and upcoming retirees will continue to grow, according to a new report by data supplier MetroStudy.
Builders broke ground on 1,488 single-family units in the region during the July-September period, a 14.5 percent gain over the year.
That was the top three months for home starts since third-quarter 2006, said Tony Polito, regional director of MetroStudy’s Sarasota-Bradenton market.
The still early days of baby boomers turning 65, coupled with good job growth and low interest rates, all fueled the best post-recession quarter for housing starts activity in Sarasota/Bradenton.
The pace of new construction has been strong all year. Housing starts in the first and second quarters also were the highest marks since 2006.
The third-quarter numbers translate to 5,576 annual starts, which beats last year’s rate by 27.3 percent.
Buyers closed on 1,313 new single-family homes in the quarter, some 23 percent ahead of 2015.
Because of retiree demand, there will continue to be growth in starts and closings in Sarasota over the next few years. This does not mean 2003-2006 levels, but demand should continue to grow.
For more information about housing starts and real estate investment in SWFL contact 9 Core Realty.